Looking back on the first half of 2021, if we had to describe it in a word it would be: busy. As a lender, and as a business, it has been a landmark year of managing record levels of demand as well as undertaking an IPO, the next step on our journey to being the technology-enabled lender that can make property finance simple for brokers and borrowers.
As we look towards the latter half of 2021, keeping that momentum and building on that success are key.
It has been a great achievement for our lending operations team to deliver on record demand while bringing the time to deliver deals down. Our tech team is making the application and underwriting process smoother with regular new enhancements that take the stress out of mortgage applications.
As the stamp duty holiday phases out but ambitious landlords remain active, wanting to grow and expand their portfolios, what could the blueprint for success in the months ahead look like?
Smoother process
To deliver on the record level of transactions over the past year, lenders have had to work creatively to quickly improve processes to satisfy demand. They shouldn’t rest easy as the stamp duty holiday ends, thinking the situation will return to a pre-holiday style of lending. Paperless, fast and easy deals are the norm now, and good lenders will be the ones that continue to build on that in the coming months.
Nothing can dampen the ambition of professional BTL landlords
As a technology-enabled lender since we began buy-to-let (BTL) lending, improving speed and delivery with new integrations to our broker portal and back-end processes is something we’re always doing. In recent months we’ve partnered with e-tech to give portfolio landlords more options for how they upload their properties; partnered with a slicker Open Banking provider to speed up the underwriting process; and integrated a host of search tools to make our underwriters’ jobs easier, and your journey to offer quicker.
Keep the personal touch
We’ve all been reminded of the value of human connections over the past year, and where lenders give more for their tech they shouldn’t take away from the inter-actions and personal relationships that are the backbone of good lending.
Making it easier to find local BDMs, growing the BDM team and keeping underwriters and case managers in close contact are how we’ve looked to ensure there’s a person behind every deal; as well as a good process, it’s what makes every deal simpler.
Paperless, fast and easy deals are the norm now, and good lenders will build on that
The ambitions of brokers and landlords should be met with lenders willing to match them. That’s why this summer we have worked closely with our broker clients to understand the limitations of our criteria before seeking to expand and simplify them, then returning to the market at the start of August with a widespread repositioning of our BTL range.
With rates starting from 2.85% and valuations at £150 per property for portfolio refinancing, we’re giving landlords the tools they need to retain and grow their businesses. Other changes include: five-year fixed rates from 3.04%; 75% LTV from 3.14% for standard property types; small HMO rates from 3.04%; and new large HMO and MUFB LTVs.
Despite the challenges of the past 18 months, it is clear that nothing can dampen the ambition of professional BTL landlords. The job of lenders now is to continue meeting that ambition.
